Final answer:
The correct answer is b) Private, public. A private corporation's stock is not sold to the general public and is often owned by a small group of individuals, whereas a public corporation's stock is available on public exchanges and can be traded by anyone.
Step-by-step explanation:
A private corporation is a corporation whose stock is owned by relatively few people and is not sold to the general public; while a public corporation is one whose stock can be bought and sold by any individual. The correct answer to the question is b) Private, public. Private corporations are typically owned by the company's founders, their families, and/or a small group of investors. These corporations do not sell their stock on public exchanges, and therefore, their financial information is not necessarily available to the public. Examples include the Mars candy company and the Bechtel engineering and construction firm.
In contrast, public corporations have their stock listed on public exchanges such as the New York Stock Exchange (NYSE) or NASDAQ, allowing anyone to buy and sell their shares. This access to the broader capital markets allows public firms to raise funds to finance their operations or new investments by issuing additional stock or bonds.